VW to sell Ducati, Scania and MAN over Dieselgate?

The nightmare that is Dieselgate doesn’t seem to be going away soon for Volkswagen AG (VW). From an unconfirmed report in the Detroit Bureau, a VW official has confirmed that the embattled German manufacturer is considering selling off some of the big brand names in its stable, such as Scania, Man and Ducati.

This sale would take the form of an IPO, or perhaps a direct sale. This proposition, if approved, would be in an effort to cover the increasing costs of the Dieselgate recall, which includes engine software recalls, engine modifications and the possibility of non-compliant diesel vehicle buy-backs. “We’re keeping all options open in regards to expanding overseas, about a possible takeover as well as about a stock market listing,” said the un-named VW spokesperson.

No timeline was given about VW making such a decision, but reports have suggested that VW was considering the possibility of letting its truck business go before the Dieselgate scandal broke. Financial analysts say VW’s truck divisons could be worth as much as USD13.5 billion. This would would go a long way to covering the cost of Dieselgate, which some have estimated to be as much as USD55 billion.

It has been reported that VW has USD7 billion to cover the intial costs of recall and rectification for its non-compliant diesel vehicles and engines, and a further USD20 billion is on tap from European banks. There is information that suggests if this sum is insufficient, its motorcycle brand Ducati may have to be put on the market.

Coming with diverse and extensive experience in heavy engineering, Mohan enjoys making anything with wheels go fast, especially motorcycles. His weapon of choice is the Desmoquattro engine, and he has a penchant for anything with a dash of Italian design. Strangely enough, he insists he's a slow rider.